Drugs firm boosts revenues by €5m

MERRION Pharmaceuticals has slashed its annual losses and boosted its revenues by €5 million.

The Dublin-headquartered company, which recently significantly upgraded its R&D capabilities here, has reported a net loss of €1.63 million for 2009, a major step towards profitability.

This figure was down from a net loss of just over €5m in 2008. Last year also saw the company’s revenues soar by 373% to €6.33m; up from the €1.34m in the previous year.

Merrion also nearly doubled its workforce last year, with employee numbers going from 23 to 40 during the 12 months. The company’s loss per share figure was reduced from 30c to 10c.

“We’re pleased with the strong operating results for last year. The significant growth in revenue is an indication of our commitment to meet necessary deadlines set out in our partner programmes with Novo Nordisk and the realisation of our first development milestone from this collaboration,” said chief executive John Lynch.

Merrion entered into a licensing/product development agreement with Danish pharmaceutical giant Novo Nordisk in late 2008.

Last year, it opened the first stage of a €3.75m R&D development in Citywest that will significantly expand its research capabilities. Merrion’s chief treatment – the bone metastases drug Orazol – is in trials. The company’s share price rose by under 2%, or 7c, to €3.95.

Speaking yesterday, Mr Lynch said the future for Merrion is positive. “We now have much needed capacity to continue our partner programmes and to avail of future market opportunities.

“We’re committed to our internal R&D projects and to expanding our early stage pipeline. Work continues on the Citywest facility as we seek to obtain our Irish Medical Board licence to manufacture.”

On the back of Merrion’s results, Ian Hunter of Goodbody Stockbrokers said: “Management has successfully met the development goals it set out at the beginning of the year and, with sufficient cash in hand, is well placed to make significant progress in 2010, including the out-licensing of Orazol, progress of oral insulin through clinical trials and the possibility of further licensing deals for its drug delivery technology.”